As a national group of insurance legislators prepares to vote on a life settlements model act, several members have taken campaign contributions from stakeholders in the model's development and passage, state records show.
The National Conference of Insurance Legislators, Troy, N.Y., is in the final stages of developing its Life Settlements Model Act. It will hold a meeting about the model on Oct. 25 in Chicago and will meet again Nov. 14, just before its annual meeting in Las Vegas.
Legislators developing the model hope the NCOIL will approve it at the annual meeting, George Keiser, R-Bismarck, N.D., chair of the Life Settlements subcommittee, tells National Underwriter.
Life settlements involve the sale of life insurance policies to a third party. They have become the focus of considerable discussion because the initial concept of life settlements has evolved, with some individuals allegedly buying life policies with the intent to sell them in the near future to a settlement firm.
Filings listed on state Web sites indicate that several members of the subcommittee have accepted campaign contributions from stakeholders in the model's development.
Records show that 4 members of the 11- member subcommittee developing the life settlement model law have accepted campaign contributions from parties that could be affected by the model.
The state legislators are: Rep. Robert Damron, D-Ky.; Rep. Robert Godshall, R-Pa.; Sen. Ralph Hudgens, R-Ga.; and Sen. James Seward, R-N.Y.
State election Web sites indicate the following campaign contributions:
Rep. Damron–received 2 campaign contributions from Alan Buerger, CEO of Coventry First, Fort Washington, Pa. The first contribution was made on Nov. 14, 2005 for $1,000, with a second donation of $1,000 on Aug. 14, 2006. A $1,000 donation was also made by Constance Buerger, CFO of Coventry First on Nov. 14, 2005.
Rep. Godshall–A $1,500 donation was made by Alan and Constance Buerger on April 17, 2007. On the same date, a $1,000 contribution was made by Michael Freedman, listed as senior vice president of Coventry First.
Sen. Hudgens–A $1,000 campaign contribution was made by Coventry First on Oct. 11, 2005. On Dec. 2, 2005, a $500 campaign contribution was made by Prudential Financial, Newark, N.J.; and on Dec. 5, 2005, the American Council of Life Insurers, Washington, made a $500 contribution.
